THE ROLE OF STRATEGIC PROCUREMENT ON AN ORGANIZATION’S PERFORMANCE: A Case Study of Cooperative Bank; Head Office

Abstract

The purpose of this study was primarily based on finding out the role of strategic procurement in an organization’s performance, in my case, the performance of Cooperative Bank of Kenya. The overriding philosophy which agitated the study on this particular organization for the study was because the company in question invariably purchases high volume of goods and services both locally and internationally, an attribute that gave the researcher a broad perspective of examining the degree of strategic procurement in the company. Over the years, the procurement function has remained passive in regard to the acquisition of high value goods and services, an attribute that cause long lead times and also high costs of purchased goods. This perennial problem has precipitated a decline of procurement/supply performance of enormous companies. The study sought to obtain more literature pertaining issues on strategic procurement and the researcher came up with conceptual framework based on how different variables affect the organization’s performance.In gathering out the data descriptive research method was used. In regard to this method, the researcher will use a structured questionnaire which will be based on simple and understandable question. The researcher also used personal interview which entails the aspect of asking questions in a prescribed form and order. The researcher found out that though a lot of strides have been made in provision of strategic procurement in Cooperative Bank, still there are couple of challenges which hamper full implementation of these attributes. The noticeable challenges include; Lack of clear communication; Lack of full support by suppliers; inadequate technical support; Lack of proper policies and also less training forums. The Co-operative bank being the area of study will gain significantly from the findings that will reveal the level to which their procurement function applies Strategic approaches.